Danish shipping company A.P. Moller Maersk's green methanol arm C2X has bought land in Huelva, southern Spain, to build a green methanol facility with a potential capacity of 1 million metric tons/year, C2X said in a recent statement.

The production facility will be located in the port of Huelva. The green methanol will be supplied to the shipping sector as a bunker fuel. Maersk didn't state when construction was scheduled to start, nor did it disclose the project's cost.

Maersk and the Spanish government teamed up in November 2022 to explore the production of green fuels in Spain.

"The green transformation can only be achieved if partners from the public and private sector work hand in hand, because a lot of what we are doing is pioneering work," Diego Perdones Montero, managing director for C2X in Spain, said in the statement.

C2X aims to increase the availability of green methanol production at scale for the shipping, aviation and chemical sectors. C2X is majority-owned by A.P. Moller Holding, with A.P. Moller-Maersk as a 20% shareholder. By 2030, it aims to have a production capacity of more than 3 million mt/year from projects in several locations worldwide.

Maersk partnered with the Egyptian government at the start of October to study the feasibility of producing green marine fuels in this region. Maersk has 25 methanol-powered container vessels on order as part of its decarbonization efforts.